AMERICAN HOSIERY FOR THE ORIENT.

(From United States Consul Monaghan, Chemnitz, Germany.)

There was recently organized in the city of Chemnitz an exporting house having for its object the importation of cheap American hosiery into Germany and the exportation of the same to the Orient. The modus operandi of this new organization seems to be to bring the cheap American hose upon the Chemnitz market, where every year the great eastern buyers of hosiery congregate in large numbers, and thus introduce them more effectively into the East by putting them in direct competition with the German hose manufactured in this vicinity. It is a well-known fact that the cheaper grades of American hosiery have already demonstrated their competitive ability upon the South American as well as upon the eastern markets, but it would seem that with the aid of the new local American exporting house entering right into the heart of one of its most formidable competitors these distant markets ought to prove far more remunerative than they have in the past.

There can be no question that the German hosiery industry can hold its own against that of any other country as far as the higher grades of hose are concerned, for Germany enjoys the numerous advantages accruing from cheapness of labor, thorough technical education, centuries of successful experience, and highly developed textile machinery. But in case of the cheaper grades of hosiery, where the determining elements of competitive ability are largely those of gigantic enterprise, thorough organization, extensive production by machine instead of by hand, and the general economy effected through operations conducted upon a colossal scale, the United States has proven itself a powerful competitor.

Because of the numerous uncertainties as to the responsibility and credit of eastern firms, one of the first requisites of the exporter in dealing with this region is thorough familiarity with his prospective customers, for there are houses with unshaken credit and others which must forever be closely watched in their operations. Oriental buyers are hard business men to deal with. They possess a wide and minute knowledge of the goods they handle and are well posted as to current values.

The leading eastern houses with established reputations generally pay by check upon delivery, or by means of an "accept" payable through the German Imperial Bank at Berlin. Smaller houses often run beyond their capital and prove very slow payers. Original cash stipulations are frequently changed to a three or four months' "accept" after several months of deliberation. While oriental buyers

sometimes buy f. o. b. at the place of manufacture, they are reported to prefer, and frequently insist upon, payment upon delivery at destination. This is included in the term "cash." It is also well to remember that in Turkey and the East in general many houses include a three or two months' acceptance in the stipulation "cash." Great precaution is necessary, as experience is said to have shown the eastern buyer to be very unreliable when it comes to good faith that the European manufacturer or exporter has lived up to his order and his sample. He is likely to weigh the goods upon arrival and compare them with the sample submitted when the order was placed, and if he can find the slightest divergence in weight or quality, even in case of isolated dozens, he not infrequently demands reclamations out of all proportion to the discrepancy from the contract.

In the matter of the quality of the hosiery exported from Germany to the Orient, there must be emphasized the necessity of thick, heavy goods, closely knit, so as to leave little space between the threads. The reason for this is that the eastern people, using as they do sandals more generally than tight foot gear, require some covering that excludes insects from their feet. It will appear from this circumstance that much of the hosiery for certain oriental countries can not be used for other markets. In colors, black is probably most popular, according to reports here. Then, also, bright colors, such as green, light blue, pink, orange, lilac, and gay combinations, are easily disposed of in the East. The quantity bought depends largely upon the price of the goods. Hosiery ranging between 1.50

and 2 marks (35.7 and 47.6 cents) are reported to be purchased, in general, from 3,000 to 5,000 dozen pairs at a time by large houses. Those ranging in price from 2.50 to 3.20 marks (59.5 to 76.2 cents) sell in quantities from 500 to 1,000 dozen pairs; articles above 5 marks ($1.19) are at times disposed of in quantities of less than 100 dozen pairs.

In the line of underwear, medium maco shirts and drawerssizes 34, 36, and 38 inches for shirts and 32, 34, and 36 inches for drawers are most easily disposed of. The heavy quality of underwear, as manufactured in southern Germany, also finds a good market. In ribbed vests the cheaper grades sell best, with some demand for the fine wool grades.

The matter of packing is a very important consideration in exporting to the Orient. Generally, goods costing more than 2.50 marks (59.5 cents) must be put up in boxes of half a dozen, and those costing less than this amount in boxes of 1 dozen. Every pair of hose must be sewed together at three places by means of a woolen thread. Why preference is given to woolen thread is not quite

plain, but from information at hand I find that such is the fact. In many cases eastern houses have their own peculiar methods of packing and require the hosiery to be done up in accordance with their instructions. Great emphasis is always placed upon the stamping of the goods in general, as many as three stamps being demanded. Another common requirement is that the boxes used for different dozens and varying qualities must be made of paper of easily distinguishable colors.

Under present freight rates the transportation of goods is not as considerable an item as might be expected at first thought. A competent local shipper gave me the following estimates on freightage from Philadelphia to Constantinople: For every 40 cubic feet of space, a charge of 16.25 marks ($3.87). This, he estimates, puts the transportation charges at about 10 pfennigs (21⁄2 cents) per dozen hose.

There is every reason to believe that the new venture of the exportation of cheap American hosiery to the Orient by way of Germany will be successful, as a roundabout way of exportation has been used heretofore. Good authority has it that during the last year at least $75,000 worth of American hosiery found its way into the East, especially the English colonies, by way of London. It would seem that these efforts will be even more successful when the American product is brought into immediate competition with the German make by being brought directly to the notice of the eastern buyer as he makes his annual visit to the Empire.

Most of the foregoing facts were obtained in conversation with commission men of this city who are desirous of adding to their German trade that of America as well. Almost in the same manner the German exporter was driven from the South American market. If our manufacturers and exporters give proper attention to all the details, such as packing, quality, stipulations of contract, adherence to sample, promptness of delivery, etc., there can hardly be a question of doubt but what we will be able to get a big share of the eastern trade. Especially necessary is it to emphasize promptness in delivery and the most scrupulous care as to the external appearance of the goods.

The men who are interested in this new undertaking are well posted in the eastern trade and represent a number of Chemnitz houses. For this reason they do not wish to have their names made public until the undertaking is ripe. Any correspondence on this subject addressed to this consulate will gladly be handed over to the men who are back of this new enterprise.

J. F. MONAGHAN, Consul.

CHEMNITZ, GERMANY, August 18, 1903.

ROOM FOR AMERICAN MANUFACTURES IN

GERMANY.

(From United States Consul-General Hughes, Coburg, Germany.)

Autos. Small automobiles or runabouts of American make, of from 6 to 10 horsepower, would, I think, have a good sale in this district. So far, only one American company has even asked for information as to the real class of goods wanted-though some fifty have sent English catalogues, which are worse than useless, as the people will not even look at them. What is wanted is a light machine, easily worked-not a complicated piece of machinery-with good brake power, as it is very hilly here, and above all a machine that is not too expensive. I should advise the opening of a small depot either here or in some neighboring city, where the goods can be shown and explained and where duplicate parts can be quickly and easily had. This latter is a very important matter, as German makers do not care to repair foreign (especially American) machines if they can possibly help it.

Rubber boots and shoes. For rubber boots and shoes I know no better market than this, yet it seems to be totally neglected by our manufacturers. We now have to send to Berlin for everything of that kind, which causes extra expense and no chance to pick out the kind of rubber wanted.

Gas cooking stoves.—I think there is no place in the world where so primitive a gas stove sells for so much money as in Coburg. It would pay any of our well-known makers to send a few samples to the Coburg City Gas Works on commission and thus introduce something to the local market worth having.

Fruits.- While some kinds of California and other American dried and evaporated fruits are for sale here, the real good article is not to be had, and consequently we are often told that our fruits are not as high class as the Metz and other German brands. Our large exporting houses can rest assured that much better markets are to be had in the middle and southern parts of the Empire than in Hamburg and Berlin, especially for this class of goods, as the people are great preserved-fruit eaters and the local fruits are neither extra good nor cheap. The best way to send them is in half-pound glasses or tins, with labels in German explaining just how the fruits. are to be treated or served.

Hardware and agricultural implements.-This is a branch that has been somewhat pushed in a business-like manner, with the result that it has paid well. While on every hand one can see evidences

of the work accomplished, I think that very much more could be done if proper catalogues, diagrams, and explanations in the German language were sent around into the towns and villages.

Coal. Since my last year's report (1902) nothing seems to have been done to promote the sale of this article. The samples that have been tried here have given most satisfactory results, but the business has been allowed to drop without a single effort to keep even the ground won by the favorable trials at different porcelain factories. The British seem to see the business that is to be done in coal in Germany, as the following statement shows: Imports into Germany of British coal during the first six months of 1901, 1902, and 1903 were 2,356,980, 2,289,259, and 2,444,688 tons, respectively.

Horses.-There has been quite a good demand for useful carriage, heavy draft, and a few selected saddle horses in this market, but only a few American horses have been for sale. Owing to the stony and hilly nature of the country, eastern horses do very well here, but western animals' hoofs go to pieces too quickly. There is quite an opening for very small ponies to take the place of dogs as used at present in pulling butcher, milk, and other carts.

Small chemical fire engines.—A good agent for an inexpensive but reliable class of these goods, if sent through the smaller towns, etc., giving practical exhibitions of his apparatus, would, I am sure, do a good business.

COBURG, GERMANY, August 13, 1903.

OLIVER J. D. HUGHES,

Consul-General.

AMERICAN AND OTHER INTERESTS IN MEXICO.

In its issue of August 8, 1903, the South American Journal, a British publication, has an editorial on "British trade in Mexico." After a word commendatory of a report by British Consul Leay, it goes on to say:

The report is well worth the attention of our manufacturers and merchants, since it emphasizes the fact which has been generally known for many years that British trade with Mexico has seriously declined and will probably continue to diminish. So much is this the case that there is not a single British firm or merchant in the city of Veracruz nor, we believe, in any of the other ports or cities of Mexico. On the other hand, trade between the Republic and the United States continues to flourish and increase and, besides, the Americans are actively engaged in investing large sums in mining and other enterprises in the country. These investments, according to a recent report, now exceed $500,000,000, whereas the British investments in railways, etc., have not recently made any advance, but were mostly made many years ago. The causes of our retrogression are well worth being made the subject of careful inquiry. It can not be alleged that it is on account of stagnation in the country, since no other Latin American Republic can show such a record of progress and progression in recent years as Mexico,